THE cost of demolishing an eyesore building in the centre of a Borders town has spiralled by £100,000, it has emerged.

Senior councillors will next week be asked to allocate funds of £2.2m for demolition and replacement of a former ground floor hair salon and upper floor flats at the corner of 12 Market Place and 2 High Street in Jedburgh.

Those costs incorporate £2.1m for a replacement building and £100k to meet additional demolition costs after issues emerged that were “not envisaged”.

It has also now emerged that although demolition work is set for completion early next year the replacement building on the site may now not be completed until 2025.

The eyesore building has been covered in scaffolding since 2015 after being judged dangerous due to falling masonry.

The council had been unable to secure the co-operation of the early 19th century’s category C-listed building’s six absentee landlords to have it brought down.

In August last year Scottish Ministers gave the local authority ownership after a Compulsory Purchase Order (CPO) was agreed.

Works have started on dismantling and redeveloping the site for housing on the upper floor and retail and community space on the ground floor.

But when members of the council’s decision-making executive committee meet on Tuesday, September 13, they will be asked to approve the use of £2.2m from the authority’s second homes council affordable housing investment budget to fund “abnormal costs in relation to demolition and the replacement building”.

A report to the executive committee from John Curry, the council’s director of infrastructure and finance, says: “The approved budget for the dismantling costs is £512k, with £188k of this spent in 2021/22 and the remaining £324k budgeted in 2022/23.

“Works on site have been progressing during 2022/23, however, during the dismantling the works have had to react in several instances to conditions that were not envisaged at the time of going to tender. This is largely attributable to the inability to get access to areas of the cellar and of the mutual gables with High Street and Exchange Street.

“As a result of conditions encountered, and changes that have had to be made to the sequence of the dismantling, the works are now forecast to conclude in February 2023 and at a total cost of £612k. This is £100k above the approved budget.”

Edinburgh-based architects Gray Macpherson have been appointed to design the replacement building, which will contain on the upper floor a mix of either three or four one and two bedroom flats allocated for affordable housing to be undertaken by Selkirk-based Eildon Housing Association.

Discussions are still ongoing over the allocation of the ground floor and completion of the development is now expected in 2024/25.

Mr Curry adds: “It is noted this will mean that there is a period of time after the completion of the dismantling works before the new replacement building commences. Officers will endeavour to minimise this period in the interests of the visual appearance of the town centre.

“The forecast of the new replacement building are at £2.1m, based on the most recent cost plan and delivery programme. It is proposed within this report that this cost will be met from the second homes council tax affordable housing investment budget.”